Modernizing ageing factories: The role of digital transformation in enhancing brownfield manufacturing
Over the past decade, companies across industries have harnessed digital technologies to transform and enhance efficiency and productivity.
However, its penetration in brownfield manufacturing remains limited.
Digitizing these ageing sites has the potential to create immense impact across business lines, as well as on social and environmental levels.
Studies have found that over 80% of companies around the world have launched digital transformation initiatives. While other industries are undergoing rapid digital transformation, the implementation of digital interventions in the manufacturing sector has had less momentum. In fact, McKinsey & Company reports that only 30% of manufacturing companies have effectively realized value at scale through Industry 4.0 practices across all their plants.
The adoption rate is even lower for brownfield manufacturing - plants which rely on existing facilities or legacy infrastructure. This is especially the case in the Asia Pacific region.
Digital penetration in brownfield manufacturing remains low due to several factors:
Digital interventions are costly. The significant investment required for digitization often leaves organizations in 'pilot purgatory' where most projects fail to progress beyond the pilot stage.
In brownfield manufacturing, legacy equipment and ageing infrastructure pose substantial barriers to digital solutions.
Manufacturing plants frequently operate in data silos. Over time, these plants have accumulated data in isolated pockets, hindering a comprehensive view of operations.
Digital transformation in brownfield manufacturing can positively impact businesses, the environment and society
Brownfield manufacturing businesses can benefit immensely from digital interventions and can enhance efficiencies, further environmental sustainability, and ensure a positive societal impact.
https://www.weforum.org/agenda..../2024/08/how-digital
